Aerolineas Argentinas’ ongoing financial and operational woes may soon reach a tipping point. Javier Milei’s government – which owns the carrier – has threatened to shut down the ailing airline should labor talks break down even further.
According to some local reports, the government has given an ultimatum of Friday afternoon to resolve the labor disputes, which have crippled the airline’s operations.
Since Milei took office last year, the government has been desperate to pawn off the state-run airline. Aerolineas Argentinas has not made a profit for 16 years.
Next Steps
Earlier this week, reports surfaced that both Avianca and Delta were part of a consortium to buy the airline. However, Delta has since denied the reports.
“Delta Air Lines has not made any offer to acquire Aerolíneas Argentinas. Reports suggesting otherwise are unfounded,” a Delta spokesperson told Los Andes.
However, Avianca and its parent company, Abra Group, have expressed some interest in the airline. During Skift’s recent Aviation Forum in Dallas, Abra Group’s commercial chief, Joe Mohan, said the company is “interested in Aerolineas Argentinas.”
(Photo: AirlineGeeks | Katie Zera)
But Mohan noted some concern over “what exactly Aerolineas represents at this point.” With Argentina adopting a full open skies policy, the already struggling airline may face even more competition.
“So Aerolineas Argentinas has been bought and sold many times over a few decades,” Mohan stated. “In fact, I did due diligence on that [at] one of my first jobs at Continental Airlines 25 years ago.”
“What is there to sell? We don’t really know,” he continued.
Mohan stated that Abra is in “due diligence” to determine the next steps over a potential deal, but he didn’t provide further details on timing.
